Let ineffective bylaws be bygone

A read through of the NSW Government’s discussion paper on strata law reform shows just how complex the sector has become. The original strata laws had only 29 provisions but today there are five separate acts with more than 1500 provisions. The laws are almost as big as the Commonwealth’s Tax Act.

Lawyers are often sought for routine matters, and unintentional breaches of the law are common. Many provisions make life harder than it needs to be for apartment owners. Owners corporations cannot reschedule their annual general meetings without applying to the Consumer, Trader and Tenancy Tribunal.

Extreme by-laws exist that mandate a particular colour scheme for outdoor furniture, prohibit barbecues on balconies, ban Christmas decorations and impose blanket bans on all pets, including fish. The government has suggested legislating for owners to have the right to ignore silly rules by containing “a presumption that by-laws which regulate activities that do not significantly affect others or do no harm are invalid”.

There is still confusion over what apartment owners are allowed to do and more clarity is needed. Protracted legal battles have erupted over people erecting sheds in their courtyards or changing the tiles in their bathrooms.

Due to complex definitions of what is private and what is common property, an owner who wants to replace wall tiles in a bathroom can do so for some walls but not others, even though they are the same tiles. But lawyers and apartment owners’ advocacy groups fear consumer protections could be watered down in the rush to get more building under way, such as by the shortening of statutory warranty periods within which developers have to foot the bill for building defects.

An owner who wants to install an air-conditioner may have to pay for a lawyer to draft an exclusive use bylaw, pay for an extraordinary general meeting to consider and pass the bylaw and pay for the cost of registering the bylaw. In addition to the cost of installing the air-conditioner.

Ben Hurley

The Australian Financial Review

BY Ben Hurley

Ben writes about emerging companies, entrepreneurship and property for BRW.